The AUDUSD opens at 0.7440 and the NZDUSD opens at 0.7080 this morning.
December 4, 2020 — 2 min read
The Australian and New Zealand dollars are both near their highest since 2018 as investors wagered the imminent arrival of COVID vaccines would help spur a global economic recovery in the months to come.
Both countries have already had considerable success in suppressing the virus, but a vaccine would allow for the resumption of international travel and support activity worldwide, boosting commodity prices.
Trade Surplus data out on Thursday easily topped forecasts thanks in the main to higher prices of the country's number one export Iron Ore.
The data also showed that the growing tensions with China has not impacted the October goods exports with a $12.7 billion rise, which is up 13% from this time last year.
While the tensions are concerning, China’s need to import 90% of its iron ore will play a major factor in keeping Australia on the front foot.
Jobless claims in the U.S came in lower with a reduction of more than half a million in one week as the pace of benefit expiration rises.
US PMI data gave mixed signals but the services sector does appear to be growing slowly.
It will come as no surprise that Brexit trade talks are ongoing, with negotiations stuck over fishing rights, which is offsetting any optimism from Britain becoming the world’s first country to approve the Pifzer vaccine.
A no deal Brexit is still a possibility.
Importers should keep working market orders higher in this rally, and exporters will be looking for some sort of dip in the coming week to add some more cover.
Global equity are mixed: Dow +0.5%, S&P 500 +0.1%, FTSE +0.4%, DAX -0.5%, CAC -0.2%, Nikkei +0.0%, Shanghai -0.2%.
Gold prices are up 0.7%, currently trading at $1,843 an ounce. WTI Crude Oil prices are also up 0.9% trading at $45.68 a barrel.